Trump’s approval rating is low, but as the midterm elections approach, he will receive a huge military budget.
Low inflation and unemployment are both good news for the economy, but voters aren’t feeling it. That could be a blow to Republicans in the midterm elections.
Economic indicators comparing corporate profits and employee compensation are at their highest since the end of World War II, further highlighting the widespread discontent among Americans of all stripes.
The graph below, created by KPMG economist Diane Swonk, shows the proportion of corporate profits as a share of gross domestic product and the proportion that goes into workers’ wages. This is a grim visual, similar to a “K-shaped” economy, where the fortunes of the “haves” rise and the fortunes of the “have-nots” fall.
The past few decades have “really not been good for workers,” Swonk said in an interview with USA TODAY, noting that “things are getting progressively worse. We’re certainly reaching a tipping point.”
It’s an issue she’s grappling with, she said, as official statistics appear to paint a fairly healthy economy, even as confidence indicators plummet and Americans feel increasingly divided and often bitter.
Some of you may wonder why you’re not getting ahead if you’re doing everything you’re told to do, like going to college. Some may resent not being as wealthy as previous generations. Still, some may struggle to make ends meet every day.
“That’s how we arrive at this story of distrust,” Swonk said. “I feel betrayed.”
He said he feels the U.S. economy is very bleak and it’s difficult to offer policy prescriptions. One example is the subsidies for purchasing insurance that were enacted during the COVID-19 pandemic and lasted for several years until expiring in 2025. Many Americans have become dependent on subsidies, which only fill gaps in a health care system that feels duct-taped and do not actually work for patients, providers, or insurance companies.
Despite not having many suggestions, Swonk still feels the need to document the numbers that suggest all is not well. “I think it’s important that people understand what’s really going on, because the economy is not the stock market.”
